Luke Howarth (Petrie, Liberal Party, Shadow Assistant Treasurer) Share this | Hansard source

Since Labor handed down their third budget, numerous economists have been exclaiming their thoughts on what we know is a true Labor budget. And there's no doubt about it: the people of Australia are doing it really tough, not just in Queensland but in all the states and territories around Australia. It's a known fact that Australians are poorer under Labor and that Aussies are paying the price for Labor's bad decisions and wrong priorities.

I was contacted by Vimal, a local business owner from Bracken Ridge in my electorate who runs a restaurant there. He was saying he's had to close his business as he can't afford to run it anymore, with inflation and costs going up and up and up. And I'm saddened to hear that this is the case for more and more businesses. This of course hurts consumers. It hurts the people who vote for us. The price of food is up by 11 per cent. The cost of housing is up by 14 per cent. There's record homelessness. Gas prices are up by 25 per cent and electricity prices by 20 per cent. And the minister will know that insurance premiums are up by 26 per cent.

There's not a lot in this budget for Australians. It does little to tame inflation and little to ease the cost of living. It does nothing to lower rent, which has probably doubled for most renters throughout Australia, and it does nothing to lower mortgages. The lousy $300 off electricity bills that they offered is a drop in the ocean. It's good for one year. What happens in years 2, 3, 4 and 5? The bill keeps going up. KPMG economist Brendan Rynne said, 'Bringing down inflation through the energy payment and rent assistance is smoke and mirrors.' Stephen Halmarick said:

The risk is now more real that the first interest rate cut could be delayed and that the neutral cash rate is higher than we currently estimate due to the expansionary fiscal setting and the high level of investment in the economy.

It goes on. There's a whole list of quotes from economists saying that this budget does little.

I've got some questions for the Assistant Treasurer and Minister for Financial Services. Professor of Economics Steven Hamilton said that this is 'the most irresponsible budget in recent memory'. He said:

… in the current and coming financial years, when the inflation crisis is at its most acute, real growth in spending is double that benchmark at 4.5 per cent and 3.6 per cent, respectively.

So why has the government put its foot on the funding accelerator when the Reserve Bank is hitting the brakes? How much more will Australian families pay the government in bracket creep due to Labor's homegrown inflation? Bracket creep is a big issue. How will that impact people? How is it economically responsible, Minister, to increase spending by twice the rate of economic growth?

I've also got questions in relation to financial advice. Financial advisers are doing it tough and paying more under this government at a time when people in our electorates right around Australia need advice. That's what they need. The budget includes several measures, on pages 71, 179, 181 and 184 of Budget Paper No. 2, that will require additional ASIC levies. My question to the minister is: how much of these additional ASIC levies will be paid for by financial advisers? On page 180 of Budget Paper No. 1, GST receipts in 2023-24 were upgraded from the MYEFO estimate of $84,079 million to $85,758 million. Does this upgrade include increased receipts due to the ATO's revised interpretation on eligibility for trustees to claim the reduced input tax credit for GST on fees paid for financial advice? I have a couple more questions to the minister on financial advice. We've estimated that GST receipts have increased by $250 million because of the ATO's new interpretation. Does that account with the minister's estimate? Finally, does this situation, Minister, accord with the government's stated aim of reducing the cost of financial advice and increasing accessibility for Australians? They're the minister's own words. I'd love some answers in relation to that.

We're all here to represent Australians in our electorates. We want to do the best job we can. But right now, in 2024, people are doing it really tough. This has all happened in the last two years, since the Albanese government were elected. There's no doubt that during the coalition years people had more money in their pocket. They were better off. Their rents weren't as high. Their mortgages weren't as high. Certainly their insurance wasn't as high. Right now, they're doing it tough. We'd love answers from the minister.

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